What is OKR Methodology?
The management by objectives methodology put forward by Peter Drucker is a process where employees and managers come together and define the goals and create a road map on how to achieve them. OKR is one of the most prominent application methods in this methodology perspective.
This method, which was implemented for the first time by Intel, was designed as a process that will prevent managers and employees from getting premiums by choosing achievable targets. On the other hand, it has been observed that the micro management style, where the managers constantly tell the employees what, in what order, and how they do not focus on the issues such as strategy and improvement of the work. In addition, it was observed that an environment in which the strategy was discussed only by the senior management did not contribute, causing serious difficulties in implementation.
OKRs are built on more frequent (3-month) targets, their alignment and prioritization by associating them with company targets. An employee, who can see the OKRs of both the top manager of the institution and all other colleagues, sees where the work he will do sits in the big picture. In this way, by deciding what is the top priority for the institution, it clearly determines the areas it will focus on.
OKRs provide cooperation and alignment between units and employees. Alignment should plan how different units will cooperate. They have the nature of a contract between the organization and employees, and increase their accountability thanks to their transparency.
BENEFITS OF OKR
OKR Main Components
It is the abbreviation of Objective and Key Results. It consists of 3 main parts.
It determines what is desired to be achieved. It should be qualified and inspiring, it should not contain numerical data. It should encourage and exhilarate people when they hear them. It should be restricted to a certain time period, it should be realistic, and it should be possible to complete it in the defined time period. It should also be difficult, be able to encourage and motivate the team that will bring it to life.
Some sample targets:
- Change the shopping habits of employees with take-out
- Making transportation foldable
- Taking the turnover into flight
What are the results of the goal are the criteria that indicate success. They must be numerical, measurable and traceable.
- Turnover Per Month Increasing
- Online Sales by 35%
- Opening 3 New Store
Activities, projects and tasks to be carried out to achieve the goals. The fulfillment of these tasks alone is not enough. The important thing is whether the results of key criteria can be achieved.
There are 4 types of OKR.
- Company OKRs
- Unit OKRs
- Team OKRs
- Personal OKRs
Depending on the size and structure of the institution, one or both unit or team goals can be used.
Other OKR Benefits
- Vision of where you want to get
- Know what's expected of you
- Guide people towards right path
- One direction everyone works towards
- Transparency and accountability of goals
- Productivity - OKRs help you measure and envision what success looks like
- Clear communication and alignment
- Simple and flexible
- Avoid a set it and forget it mindset